Flat half expected from PBL

By Wendy FrewMarch 3 2003

The Packer family's Publishing & Broadcasting is expected to post a flat result for the six months to December, but growth could stretch into double digits in the second half.

The television, gaming and magazine publisher, which will release its latest performance figures on Wednesday, recorded a 17 per cent slump in net profit to $160 million in the previous corresponding six months. On a normalised win-rate basis, the previous net profit was $182.7 million.

It is understood that, excluding the impact of the win-rate (the amount players can expect to win or lose) on Crown Casino profits, the second half could see a 10 per cent rise.

UBS said in a report that non-recurring items, such as the profit from the sale of online auction site eBay, would probably colour the result.");document.write("

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UBS cut its first-half television revenue forecasts by $3 million after the release of official market share data showed PBL's share of the five-city market of 37.9 per cent was below the broker's forecast of 38.3 per cent.

"Given the group's renewed focus on costs, we expect any further share slippage will lead to further cost reductions," UBS said.

"In addition, our ecorp forecasts have been lifted ... while our Foxtel forecast loss has increased in line with the numbers reported by News Corp."

Its target for PBL is still $10.

PBL said in October that in 2002-03, television's first quarter revenue was below budget.

"However, the October to December quarter has seen a turnaround and revenue will be above budget," PBL said.

"We are hopeful that this trend will continue."

It also said its magazine arm, ACP, was performing strongly and Crown Casino had enjoyed growth rates on the main gaming floor consistent with those of 2001-02. But it expects the smoking bans to hurt revenue.